Mitchell-Lama Privatization (New York, York: section 8, sales, apartments)
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My ML co-op is again starting up the privatization campaign. It was done about 10 years ago (before I moved in) and it was closely defeated.
Has anyone else gone through this? Have you stayed or did you sell out?
I just found out last night that the board voted unanimously to again begin the process and I spent a sleepless night trying to imagine the future consequences if we went private because it is likely the apartments would go for a handsome bundle, UES, well-kept doorman building, 200 feet from the new subway. I don't know if I could "do" the burbs anymore what with the agony of driving again, leaky roofs, plumbing responsibilities, no culture, fast food <yecch.>
I am fairly well versed in the adventures of Midtown East and Southbridge but I will try to familiarize myself with more of the nitty-gritty of the process.
I like where I am living but I would vote to privatize.
A big question is whether the flip tax on sales would cover the potential increase in Maintenance fees, taxes and mortgage interest for those who chose to stay on.
Sorry to hear this. Can I ask why would you vote to privatize? A question was posed by someone going through this and what they said when thinking about privatizing. Would your family and friends be able to buy into a privatized city? The benefits of living well below the rents and expenses of coops/ condos should be worth its weight.
Privatization is for scum bags. First of all you bought into a Mitchell-lama at a subsidized price and it gave you a good quality of life that you would not have got otherwise. So now these privatization people want to turn around and ruin what could be affordable housing for generations to come, and sell out of the program and make it so that working people can't afford to live in the building anymore. What a disgusting self-centered thing to do, it should be legally banned.
Now that we are over the disgusting ideology of the privatizatizers. Let's discuss the practical implications of why this makes absolutely no sense for people in the co-op.
1.) loss of Section 236 subsidy and any city subsidies or grants will cause an increase of the carrying charge
2.) loss of tax credits will cause an increase of the carrying charge
3.) loss of SCRIE and DRIE benefits is possible, causing the rent of senior citizens and disabled individuals carrying charges to go way up
4.) loss of the ability to internally transfer within the building to bigger or smaller apartments depending on family size
5.) loss of HUD status means parking and laundry facilities are no longer required (if your building has them) and so these facilities will be privatized too and become unaffordable for current residents
6.) loss of the ability to obtain low interest loans for repairs will cause an increase of carrying charges
My building for instance, gets nearly $500,000 a year in subsidies not counting Section 8 subsidies. You think if you take that away that carrying charges will remain low? Hell no!
Privatization is only good for those people who don't care about the community, who don't give a shiit about what happens to the building or its cooperators, and who want to get out of the building and make a quick buck. For those of us that would like to remain because we love our community, and who want keep our carrying charges low and affordable and not have to go back to paying market rent, staying Mitchell-Lama is the smarter decision
Mitchell lama co-ops were never intended to be sold for profit. They were meant to be social housing for generations to come. I hope you vote to remain Mitchell-lama for that reason alone. It's the morally right thing to do.
A big question is whether the flip tax on sales would cover the potential increase in Maintenance fees, taxes and mortgage interest for those who chose to stay on.
I thought that was the point of flip tax?
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
Privatization is for scum bags. First of all you bought into a Mitchell-lama at a subsidized price and it gave you a good quality of life that you would not have got otherwise. So now these privatization people want to turn around and ruin what could be affordable housing for generations to come, and sell out of the program and make it so that working people can't afford to live in the building anymore. What a disgusting self-centered thing to do, it should be legally banned.
Now that we are over the disgusting ideology of the privatizatizers. Let's discuss the practical implications of why this makes absolutely no sense for people in the co-op.
1.) loss of Section 236 subsidy and any city subsidies or grants will cause an increase of the carrying charge
2.) loss of tax credits will cause an increase of the carrying charge
3.) loss of SCRIE and DRIE benefits is possible, causing the rent of senior citizens and disabled individuals carrying charges to go way up
4.) loss of the ability to internally transfer within the building to bigger or smaller apartments depending on family size
5.) loss of HUD status means parking and laundry facilities are no longer required (if your building has them) and so these facilities will be privatized too and become unaffordable for current residents
6.) loss of the ability to obtain low interest loans for repairs will cause an increase of carrying charges
My building for instance, gets nearly $500,000 a year in subsidies not counting Section 8 subsidies. You think if you take that away that carrying charges will remain low? Hell no!
Privatization is only good for those people who don't care about the community, who don't give a shiit about what happens to the building or its cooperators, and who want to get out of the building and make a quick buck. For those of us that would like to remain because we love our community, and who want keep our carrying charges low and affordable and not have to go back to paying market rent, staying Mitchell-Lama is the smarter decision
Mitchell lama co-ops were never intended to be sold for profit. They were meant to be social housing for generations to come. I hope you vote to remain Mitchell-lama for that reason alone. It's the morally right thing to do.
Yeah its kinda greedy, but NYC makes it easy to sell out. People just get tired of the ratrace and there will probably be never be another windfall in their life such as that one. In all honesty, if privatization was proposed in my complex, I'm not sure what I would do. On one hand, ML being affordable is the point of it all. On the other hand, I have a family to take care of.
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"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
This is a highly serious matter and that is the mindset that privateers hope for. Having affordability for generations to come makes it a place where teachers, police and the like to live in the city they serve. The low buy in and maintenance allow for families to secure a future for themselves and there children. Hey and no one is stopped from buying investment property to leave to children. Be conscious of your good fortune and find the balance to think of future affordability for all New Yorkers.
My vote to go private, if that is what I do, will be one of 660 so the matter is probably not at all in my hands.
When I moved in near 7 years ago, I thought moving out was going to be only feet first. It may still be.
Reasons to move is that we two are limited to only one bedroom and we have a big desk in the living room and no room for a separate freezer (and I am a cook.) We have a small kitchen, small fridge, and a preposterously tiny bathroom. A little UPsizing would be a delight.
Big reasons to stay are the $700 maintenance including electricity and good heat. The building is well kept with nice carpeted and wallpapered hallways, 3 doormen at all times (3 entrances,) a staff of 33 people in a very safe neighborhood.
I guess the feasibility study, just begun, will give us some idea of whether or not maintenance is likely to take a leap up. I have no idea what the percentage the "flip tax will be.
Neither of us has any heirs worth leaving the place, or the cash to.
Can you get a reverse mortgage on a NY co-op?
Is it GREEDY to want separate bedrooms? Or a garden? Or a guest room?
Boogey, If we stayed in New York, why would SCRIE disappear? We don't have it now but with a much higher rent/maintenance, we might need it as a safety net in the future. We don't make anywhere near $50K per year since we are both retired, so we would qualify for SCRIE if we needed it.
Last edited by Kefir King; 03-24-2017 at 09:05 AM..
Kefir, I'm glad you see that remaining in the program benefits you if you want to stay, and privatizing only benefits those who want to leave.
If you want to upsize you should request an internal transfer. A right you would lose if you privatize.
Another thing to consider is that you probably won't be able to upsize and pay the low equity and carrying charge that you do now.
You will lose SCRIE If you have it, or are eligible for it, because SCRIE is only permitted for Mitchell Lama, HFDC, and Rent-stabilized tenants. If your building become a private co-op it no longer falls in that category and so you will not be able to keep using your SCRIE aren't freeze. Even if you are well off and don't need it. Think about how many senior and disabled cooperators in your building this would effect and how they would be forced out of their homes.
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